Dumping the dollars makes no sense at all, for China.
If you have a 100$ note, and you want to tear it ... as a mark of disrespect to USA ....
Well, sure. Help youself doing it.
China actually could do the opposite ..... they could threaten to depreciate the Yuan to 10 CNY = 1USD.
Hell ..... it can also be made to 100 CNY = 1 USD.
I am sure, Obama would start crying, if 100 CNY = 1 USD.
And Chinese exporters would be jumping and dancing ... they would be able to export 1 ton of steel at a price cheaper than 1 ton of Australian iron-ore.
Ghosh .... Australia's entire iron-ore mining industry would collapse.
Thank you for your reply Sir,
I know for sure that dumping the dollar would not make any sense. But I was replying to the following post.
You know the problem is that obama has a chip on his shoulder. Because he is a democrat a black and has a muslim middle name he thinks he has to go overboard on every issue to prove that he is more right wing than bush and co. By these actions he is polarising the world and the chinese are more likely to give him a good spanking. All they have to do is start dumping the us dollars. yes it will hurt chinese but not as much as it will hurt americans. And the american population is not used to hardship or people being kia.
Hope you get it now.